PremiumReview of oil, gas operations in Azerbaijan in January-February 2020

BAKU, Azerbaijan, March 30

By Nargiz Ismayilova – Trend:

Azerbaijan's State Statistical Committee has published review of data on oil and gas operations in the country, Trend reports referring to the Committee's report.

1. FEC

а) Oil and Gas Production

Azerbaijan produced almost 6.1 million tons of oil and gas condensate in January-February 2020, which is 3.8 percent less than in the same period of 2019, according to the report.

Output of gas production in Azerbaijan stood at almost 6.6 billion cubic meters, including 4.7 billion cubic meters of commercial gas in January-February 2020. In annual terms, these figures increased by 10.3 percent and 16 percent respectively.

Reserve of finished product (oil) in Azerbaijan stood at 217,000 tons by March 1, 2020.

The main oil output in Azerbaijan accounts for the Azeri-Chirag-Gunashli (ACG) block of oil and gas fields.

In January-February 2020, the Dan Ulduzu structure interpreted the data obtained after seismic acquisition. In order to consider this structure as a field, it is necessary to conduct appropriate geological exploration work to determine its potential. It is planned to ship the Dede Gorgud rig to drill an exploratory well at the Aypara structure, where seismic acquisition was carried out at the end of last year. The drilling work will last approximately two months.

Azerbaijan approved a deal on the purchase by the Hungarian energy company MOL of the share of American Chevron in the development of a block of ACG deposits in the Azerbaijani sector of the Caspian Sea and in the Baku-Tbilisi-Ceyhan (BTC) pipeline.

The Black Sea Bank for Reconstruction and Development (BSTDB) transferred to SOCAR AQS funds for the purchase of production equipment.

b) Processing

Azerbaijan produced 539.1 million tons of oil products in January-February 2020, which is 11.3 percent more than in the same period of 2019, Azerbaijan's State Statistics Committee said in a report.

SOCAR, which is the sole producer of oil products in Azerbaijan, is currently modernizing its processing facilities as the fuel consumption has increased in the country.

Monthly aggregate output of oil products in February fell by 2.2 percent against monthly increase in such products as oil bitumen by 5.3 percent.

Azerbaijan's output of oil products in 2020:

2. Chemical complex

Azerbaijan produced over 1,672 tons of paint products in January-February 2020, which is 1.7 times less than in the same period of 2019, says a report of the country's State Statistics Committee.

In January-February 2020, 22,400 tons of propylene were produced in Azerbaijan that is 17.9 percent more than in January-February 2019.

During the reported period 27,400 tons of ethylene were produced in the country.

In January-February 2020, an increase was registered in output of the major part of main chemical products in Azerbaijan.

Azerbaijan's output of main chemical products:

Also,the country produced 8,570 tons of solid polyethylene pipes, tubes, hoses, which is 17.8 percent less than in January-February 2019.

At the Ethylene-Polyethylene plant, construction of a new steam turbine generator is underway to increase the production capacity of the complex, which provides the plant with electricity. The new steam turbine generator will fully meet the plant demands. The design capacity of the existing steam generator complex is planned to be increased to 65 megawatts per second.

Due to the internal capabilities of Azerikimya Production Union (PU), reconstruction of the existing old substation is underway. After the project is completed, the PU will be able to transfer electricity, provided at the expense of its own capabilities, to other SOCAR enterprises, as well as to consumers in Sumgayit.

Both projects are planned to be completed in the 3rd quarter of this year.

Overhauls at the SOCAR Methanol plant are scheduled to begin in July-August this year. The overhaul is expected to last about 1.5 months.

In 2019, SOCAR produced 383,000 tons of methanol. The methanol plant capacity is 650,000-700,000 thousand tons of products per year. This plant is the only methanol producer in the South Caucasus and Central Asia. It was commissioned in January 2014.

3. Electricity

Azerbaijan's power plants generated 4.4 billion kilowatt hours of electricity in January-February 2020, which is 4.1 percent less than in the same period of 2019, says a report of the State Statistics Committee.

The report says that 4.2 billion kilowatt hours of the total electricity generated in January-February 2020 accounted for commercial electricity, which is 4.5 percent more than in the same period of 2019.

Thermal power plants generated 4.1 billion kilowatt hours of total commercial electricity in January-February 2020, which is 6.5 percent more than in January- February 2019.

During the reported period Azerbaijan's hydro-power plants generated 1.24 billion kilowatt hours of electricity, which is 31.4 percent less than in January- February 2019.

Azerbaijan’s wind farms produced 17 million kilowatt hours of electricity (annual decrease by 9.1 percent), while solar power plants generated 4.7 million kilowatt hours of electricity (decrease by 7.8 percent) in the reporting period.

Azerenergy JSC, ensuring the functioning of the country's electric power system, coordinates the production and transmission of electricity, 110, 220, 330, 500 kilovolt high-voltage power lines and their dispatch control facilities.

Applying new technologies, Azerbaijan is organizing the reconstruction of high voltage power lines and increasing generating capacities. At the same time, energy exchange operations are being conducted with foreign countries.

The main producer of electricity in Azerbaijan is Azerenergy JSC, which has 500, 330, 220 and 110 kV-ampere substations on its balance.

The "Rehabilitation Program", covering 2018-2021, envisions restoration of over 1,000 megawatts of "lost" power and ensuring reliable operation of power plants and substations in the country. Azerenergy is carrying out renovation and a number of repair works at 12 power plants and about 20 substations in accordance with this program.

As of now, the renovation and commissioning of the 220 kV "Mushfig" substation in Badamdar settlement, Sabayil district, Baku, and the 110 kV "Zabrat" substation in Zabrat settlement, Sabunchu district, Baku have been completed.

The renovation of "Eighth kilometer" and "Sulfanol" 110 kV substations in Sumgayit, which were in operation since 1968 and 1976 accordingly, has been completed.

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